{"id":62807,"date":"2022-06-13T11:15:18","date_gmt":"2022-06-13T08:15:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62807"},"modified":"2025-09-05T20:13:03","modified_gmt":"2025-09-05T17:13:03","slug":"algorithmic-stablecoin-usdd-briefly-lost-its-peg-to-the-us-dollar","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/algorithmic-stablecoin-usdd-briefly-lost-its-peg-to-the-us-dollar\/","title":{"rendered":"Algorithmic stablecoin USDD briefly lost its peg to the US dollar"},"content":{"rendered":"<p>On Monday, June 13, the <a href=\"https:\/\/forklog.com\/en\/news\/algorithmic-stablecoins-how-alternatives-to-usdt-and-usdc-are-evolving\">algorithmic stablecoin<\/a> USDD from TRON briefly lost its peg to the US dollar and fell to $0.97.<\/p>\n<p>As of writing, the asset was trading at around $0.99.<\/p>\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/SJPSNGeQqzwUJouHyGqvHi_ktc92e1u8HeJ-8CjpwjsCKm83AQCHrfYgce_EIEwIbSMIaAkIokt8Y4YR0ABV_hu5qgyA7PvBT2fPw52XnLThjQZ1oIbwXpsJzyvIOhon-IR2aT60JYP1eGGaeQ\" alt=\"Algorithmic stablecoin USDD briefly lost its peg to the US dollar\" style=\"width:793px;height:579px\"\/><figcaption class=\"wp-element-caption\">Half-hour chart of USDD\/USDT on Poloniex. Data: TradingView.<\/figcaption><\/figure>\n<p>The decoupling occurred amid the <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-price-tumbles-below-23000\">crash<\/a> of the cryptocurrency market. At the time of writing, Bitcoin\u2019s price had fallen below $24,800, Ethereum below $1,270.<\/p>\n<p>Earlier, the TRON DAO Reserve purchased BTC and TRON tokens for a total of $50 million to back USDD.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve is buying $50 million worth of <a href=\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&#038;ref_src=twsrc%5Etfw\">#BTC<\/a> and <a href=\"https:\/\/twitter.com\/hashtag\/TRX?src=hash&#038;ref_src=twsrc%5Etfw\">#TRX<\/a> for reserve.<\/p>\n<p>\u2014 TRON DAO Reserve (@trondaoreserve) <a href=\"https:\/\/twitter.com\/trondaoreserve\/status\/1535635732525621257?ref_src=twsrc%5Etfw\">June 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to the Twitter post, the purchase was driven by a pledge to safeguard the entire blockchain industry and the crypto market as a whole.<\/p>\n<p>According to the organization\u2019s website, as of writing there are more than 723.3 million USDD in circulation, backed by reserves in BTC, USDT and TRX at nearly 185% of value.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/aRsp47D5KWFEys7Fx-PS-GF9C5EvH5HEwAa0z3XufiTNj5l28ByL12zJmKgaiI0w2iJN9YyvdQCZowPIKTu61NDL3pvOYUVyPSoTIv91hgxI71nQQjniNOuOxIRyF-86SdpykjCLZfBBs1cylw\" alt=\"Algorithmic stablecoin USDD briefly lost its peg to the US dollar\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/tdr.org\/#\/\"> Tron DAO Reserve<\/a>.<\/figcaption><\/figure>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">June 13, 2022 | 08:51<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>TRON DAO Reserve said it had received 700 million USDC to defend the USDD peg to the US dollar. As of writing, the collateralization level <a href=\"https:\/\/tdr.org\/#\/\">\u0441\u043e\u0441\u0442\u0430\u0432\u043b\u044f\u0435\u0442<\/a> 280%.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">For the market extreme condition, <a href=\"https:\/\/twitter.com\/trondaoreserve?ref_src=twsrc%5Etfw\">@trondaoreserve<\/a> has received 700 million USDC to defend <a href=\"https:\/\/twitter.com\/hashtag\/USDD?src=hash&#038;ref_src=twsrc%5Etfw\">#USDD<\/a> peg. Now USDD collateralization rate is nearly 300%. <a href=\"https:\/\/t.co\/ULYBfjt2i0\">https:\/\/t.co\/ULYBfjt2i0<\/a><\/p>\n<p>\u2014 TRON DAO Reserve (@trondaoreserve) <a href=\"https:\/\/twitter.com\/trondaoreserve\/status\/1536264192033972226?ref_src=twsrc%5Etfw\">June 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div>\n<p>In April, Justin Sun <a href=\"https:\/\/forklog.com\/en\/news\/tron-to-launch-algorithmic-stablecoin-usdd\">announced<\/a> the launch of USDD, with its release on May 5. The asset, by its algorithmic design, mirrors the TerraUSD (UST) stablecoin model.<\/p>\n<p>On May 10, TRON DAO Reserve <a href=\"https:\/\/forklog.io\/tron-dao-reserve-kupila-bitkoiny-i-tokeny-trx-na-61-mln-dlya-obespecheniya-usdd\/\">began<\/a> first operations to acquire reserve assets. The organization bought 500 BTC at an average price of $31,000 for more than $15.5 million, and 595.7 million TRX cost $45.6 million.<\/p>\n<p>Later, Sun promised <a href=\"https:\/\/forklog.com\/en\/news\/justin-sun-to-earmark-2bn-to-safeguard-usdds-peg\">to allocate $2 billion<\/a> through TRON DAO Reserve to prevent the stablecoin from losing its peg to the US dollar, as happened with UST. According to him, the team <a href=\"https:\/\/forklog.com\/en\/news\/justin-sun-explains-trons-usdd-collateral-model\">learned lessons<\/a> from the Terra ecosystem crash.<\/p>\n<p>Earlier, Sun said he planned to maintain overcollateralization of the algorithmic stablecoin at no less than 130%.<\/p>\n<p>Subscribe to ForkLog\u2019s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Monday, June 13, the algorithmic stablecoin USDD from Tron briefly lost its peg to the US dollar and fell to $0.97.<\/p>\n","protected":false},"author":1,"featured_media":62808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,807,951,1660],"class_list":["post-62807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-stablecoins","tag-tron","tag-usdd-stablecoin"],"aioseo_notices":[],"amp_enabled":true,"views":"31","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=62807"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62807\/revisions"}],"predecessor-version":[{"id":62809,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62807\/revisions\/62809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/62808"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=62807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=62807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=62807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}